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ASHA 777 [7]
3 years ago
10

A company needs funds to expand its business by purchasing new equipment. Which financial market should the company use to raise

money
Business
1 answer:
Cloud [144]3 years ago
6 0

Answer:

Capital market

Explanation:

The capital market is an aspect of the financial market where long term capital is raised. Funds raised in this market can be in the form of,

  • Equity capital: which grants fund providers an ownership stake in the company, the prospect of future dividends (when declared), and voting rights in the company.
  • Debt capital: which entitles fund providers to regular interest payments usually a fixed rate of the fund provided.

The nature of project (long or short term) usually determine the market to access for funding. For short term funding, a company can access such in the Money Market where short term funding (usually with maturity of less than one year) are raised.

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Production equipment costing $500,000 has been purchased by a contract manufacturing company to meet the specific needs of a cus
irina1246 [14]

Answer:

Short-cut IRR = 18.75%

The company has not reached their rate of return goal on this contract and investment.

Explanation:

a) Data and Calculations:

Cost of production equipment = $500,000

Qualified investment tax credit (ITC) = 10% = $50,000 ($500,000 * 10%)

Contract period = 4 years with 4 years extension on renewal

Income tax rate for the company = 40%

Expected after-tax rate of return = 12%

Expected before-tax rate of return = 30% (12%/40%)

Annual income generated by the equipment = $150,000 for 4 years

Salvage value at the end of 4 years = $200,000

Short-cut IRR = 100%, divided by the number of years * about 75-80%

= 100%/4 * 75%

= 18.75%

8 0
3 years ago
In the context of recruitment sources, referrals are people who apply for a vacancy without prompting from the organization. ( T
scoray [572]

Answer:

<u>FALSE</u>

Explanation:

Note that, recruitment sources are the channels or sources from which qualified applicants for a position in a company are gotten. One such channel or source is through employees in the organisation who knows a qualified person outside the organisation to take up open positions.

Therefore,  the Referrals are those that apply because they were prompted or referred by employees in the organisation to apply for vacancy.

7 0
3 years ago
In the context of foreign market entry, ________ requires no equity investment and thus has a low risk, low rate of return, and
Oksanka [162]

it is B because franchising is the best option

7 0
3 years ago
Read 2 more answers
A plaintiff in a successful lawsuit was awarded a judgment of $4800 per month for 5 years. The plaintiff has the need of a fairl
tatiyna

Answer:

58.81% annual

or 3.93% monthly

Explanation:

Using a financial calculator, we can determine the internal rate of return of this investment. The initial outlay is -$110,000, and the 60 $4,800 cash flows follow. The IRR is 3.93 per month. In order to determine the effective annual rate, we can use the following formula:

effective annual rate = (1 + 3.93%)¹² - 1 = 58.81%

8 0
3 years ago
Prepare journal entries for each transaction listed. (If no entry is required for a transaction/event, select "No Journal Entry
AysviL [449]

Answer:

The journal entries are shown below:

Explanation:

According to the scenario, the journal entries for the given data are as follows:

(1). Jun.30   Bad Debt expense A/c Dr $12,800

                   To Allowance for Doubtful A/c $12,800

                    (Being the bad debt expense is recorded)

(2). July       Allowance for Doubtful A/c Dr $6,400

                   To Accounts Receivable A/c $6,400

                    (Being the customer balance written off is recorded)

7 0
3 years ago
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